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Calculate Tax on an Invoice

This article applies to:Avalara AvaTax for Workday

After you set up and configure your accounting software for AvaTax, calculate sales tax on a variety of transaction types:

  • Estimates
  • Orders
  • Invoices
  • Cash sales
  • Return authorizations
  • Credit memos
  • Cash refunds

Create one of those transaction types and click Save. Your accounting software uses the customer's ship-to address to calculate the correct sales tax. 

If you're applying discounts, take the following information into consideration:

  • The header-level discount is applied to all taxable items in the transaction
  • The line-level discount is applied to the item above the discount row
  • If both the header-level and the line-level discounts are applied, then their cumulative discount is applied to the line item.

Post the following transaction types from your accounting software to AvaTax:

  • Invoices
  • Cash sales
  • Credit memos
  • Cash refunds

Calculate tax on an invoice

  1. Sign in to Workday.

  2. In the Search box, type Create Customer Invoice, and then click Create Customers Invoice.
  3. On the Blank Invoice page, enter the invoice details:
    1. Enter the Company Name and the Customer Name.
    2. Select the appropriate Sales Item for calculating tax.
    3. Click Submit.
  4. You receive a notification after the invoice is submitted successfully. Click the Notification link to refresh the invoice details.
  5. The Invoice displays the Overall Status of the integration and the Tax Amount for this invoice. 

The invoice also displays the Tax Calculation Details for this invoice:

Calculate relative tax (Tax on Tax)

This section explains how to use AvaTax to calculate relative tax (i.e. Tax on Tax) for a customer invoice with the following conditions:

  • The Ship-to country is India
  • The Item Type is Service
  1. Sign in to Workday.
  2. In the Search box, type Create Customer Invoice, and then click Create Customer Invoice.

  3. In the Create Customer invoice window, enter the Company, Customer, and other required details:
    1. On the Invoice lines tab, add details for a new line item. Click + to add more line items. In AvaTax for Workday, for an item, you can add 4 tax detail fields at a time.   

    2. Select a Sales Item from the list. To ensure that the item type is Service, click the selected Sales Item Name and confirm the Sales Item Identifier value with respective service codes.

    3. Ensure that header-level Ship-to address or the line-level Ship-to address is located in India.

    4. Click Submit .
  4. You receive a notification after the invoice is successfully submitted. Click the Notification link to refresh the invoice details and to view the tax details.

    The customer invoice with tax details:

  5. On the Invoice Lines tab, click ... to view additional data for this invoice.

  6. In the Customer invoice line, click Additional data > View All to view all the tax details.


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